Hari was pitching Novo Nordisk, down about 40% from its 52-week high and trading near 12 times forward earnings. His point is that the market has priced in decline, not just a slowdown.
Hey, Toby, Stick. Good to see you both. And hello to everyone. Happy to be back.
Fantastic. Yeah, it's so good seeing you. And let's just jump right into it. Hari, let's hear your pick first.
…of the drug, but I think they're well known by Ozampic. Ozempic is pretty much a household name now. Even if somebody is not taking it, then they would have heard about the name. But the reason I like this pick, or I am pitching it, is it's a company that's 100-plus year old, great business. I wouldn't call it as a deep value. I'm pretty sure Toby will disagree if that this is a deep value, but it's a good business at a price that assumes that it's a melting ice cube. So just kind of for background, for those of you who don't know what is Novo as it's known, has been up to. They have been in this diabetics therapeutics for over 100 years. One of the things to note is this is one of those companies, like many of the European companies, it's controlled by a foundation. So that makes the dynamics a bit different. It's almost like say Meta or Google where. The…
Harry, enjoyed the presentation. When you look at something like Tezepatzide, which is the competitor, and I've seen some influencers suggesting that I don't understand this stuff particularly well, but it targets an additional pathway that Azempic or WeGavi doesn't target. And as a result, it…
Actually, that's a very good question. And that's one of the reasons why the stock is down, Toby. Is it a winner-take-all kind of a business, or is it going to be like a duopoly? Right now, NOAA is positioning itself as the cost-effective alternative with slightly lower efficacy. So there might be…
All right. Thank you, Hari. You know, it was interesting that you mentioned that a few years ago, it seemed like everyone owned Novo. For me, being born and raised here in Denmark, I feel like for the past 40 years, everyone has always owned it and always wanted to talk about it. And I don't know.…